Olympic organizers say agreement reached with G4S

LONDON -- The organizers of last summer's London Olympics said Tuesday that security firm G4S has agreed to take a hit of 85 million pounds ($133 million) over its failure to meet the terms of its contract.

Organizers had to scramble to provide military personnel and other extra security after G4S admitted it could not provide all of the 10,400 security guards it had promised for games venues.

The two sides have been in talks over a final settlement for the 240 million-pound security contract.

The games' organizing committee, LOCOG, said G4S had agreed to an adjustment of 85 million pounds in the terms of the contract.

That includes 48 million pounds to cover "all the additional military, police and other step-in costs" incurred by organizers because of G4S's failure and a reduction in the project management costs and operational costs paid to G4S.

Home Secretary Theresa May said in a statement that the government fully backed the agreement. She said it met the government's objective that British taxpayers would not be "adversely impacted" by the failure of G4S to meet its obligations.

The statement also stressed that Olympic organizers did not have to pay for any services that were not delivered.

G4S said its total loss from the games would be 70 million pounds, more than its previous estimate of 50 million pounds.

G4S chief executive Nick Buckles said the agreement had been reached without protracted legal proceedings.

"The U.K. government is an important customer for the group and we felt that it was in all of our interests to bring this matter to a close," he said.